Moody’s gives BBVA program Baa3

Moody's Investors Service said it assigned a provisional Baa3 rating to the long-term senior non-preferred medium-term note program of Banco Bilbao Vizcaya Argentaria, SA (BBVA).

The senior non-preferred notes, referred to as "junior senior" unsecured notes, could be issued under BBVA's €40 billion global medium-term note program.

Moody’s said the provisional Baa3 rating reflects: (a) BBVA's adjusted baseline credit assessment of baa2; (b) Moody's Advanced Loss Given Failure analysis, which indicates likely high loss severity for these instruments in the event of the bank's failure, leading to a position one notch below the bank's adjusted BCA; and (c) the agency’s assumption of a low probability of government support for this new instrument, resulting in no uplift.

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